FCGO seeks monthly reports of direct payment
KATHMANDU, AUG 23 -
The Financial Comptroller General’s Office (FCGO), which maintains records of the government’s treasury, has told government agencies to submit monthly reports of expenditures made through direct payment of foreign aid from the current fiscal year.
Until the last fiscal year, ministries reported their expenditure of direct payment to the FCGO only after the end of the fiscal year. Direct payment refers to payment made directly to contractors by donors instead of through government channels.
The government has sought to mobilise foreign aid (both grants and loans) worth Rs 40 billion in the current fiscal year through direct and commodity payment which amounts to 40 percent of the total aid sought for the current fiscal year. The government has sought to mobilise Rs 100 billion from foreign aid.
“This measure will keep us updated of the expenditure pattern of direct payment made by donors,” said Narayan Niraula, deputy financial comptroller general. “The monitoring of direct payment effectively will also help faster implementation of projects.”
The FCGO made the decision as per the understanding reached at the Nepal Portfolio Performance Review (NPPR) meet, a wider platform for Nepal and development partners to interact on the progress and challenges of donor-funded projects, held a few months ago.
Despite being incorporated in the government’s red book, most direct payments made by donors are not being audited by government authorities. “We audit direct payments if the aid agreement has enabled us to audit them,” said Mohadutta Timalsina, spokesperson of the Office of the Auditor General (OAG).
In case of the Asian Development Bank and the World Bank, the OAG audits the spending of their aid.
“Projects don’t report to the government agencies regularly of such spending,” said Niraula. “But they provide details of spending to the OAG after completing an audit by independent auditors.
Source: Kantipur
The Financial Comptroller General’s Office (FCGO), which maintains records of the government’s treasury, has told government agencies to submit monthly reports of expenditures made through direct payment of foreign aid from the current fiscal year.
Until the last fiscal year, ministries reported their expenditure of direct payment to the FCGO only after the end of the fiscal year. Direct payment refers to payment made directly to contractors by donors instead of through government channels.
The government has sought to mobilise foreign aid (both grants and loans) worth Rs 40 billion in the current fiscal year through direct and commodity payment which amounts to 40 percent of the total aid sought for the current fiscal year. The government has sought to mobilise Rs 100 billion from foreign aid.
“This measure will keep us updated of the expenditure pattern of direct payment made by donors,” said Narayan Niraula, deputy financial comptroller general. “The monitoring of direct payment effectively will also help faster implementation of projects.”
The FCGO made the decision as per the understanding reached at the Nepal Portfolio Performance Review (NPPR) meet, a wider platform for Nepal and development partners to interact on the progress and challenges of donor-funded projects, held a few months ago.
Despite being incorporated in the government’s red book, most direct payments made by donors are not being audited by government authorities. “We audit direct payments if the aid agreement has enabled us to audit them,” said Mohadutta Timalsina, spokesperson of the Office of the Auditor General (OAG).
In case of the Asian Development Bank and the World Bank, the OAG audits the spending of their aid.
“Projects don’t report to the government agencies regularly of such spending,” said Niraula. “But they provide details of spending to the OAG after completing an audit by independent auditors.
Source: Kantipur
